Joyland Group pays $5.5M for possible development site in Williamsburg

Developer Joyland Group through the entity North Williamsburg Corner Kent LLC paid $5.5 million to Gary Zimberg through the entity Zep Group LLC, for the industrial building (F4), a possible development site, at 15-19 Wythe Avenue in Williamsburg, Brooklyn.
The deal closed on April 17, 2023 and was recorded on April 24, 2023. The property has 5,000 square feet of built space and 4,999 square feet of additional air rights for a total buildable of 9,998 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,100 and the price per buildable square foot is $550 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on April 26, 2012, for $1.5 million. The signatory for Gary Zimberg was Gary Zimberg. The signatory for Joyland Group was Joel Wertzberger.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Joyland Group had purchased two properties for $8.5 million and has no record it sold any properties over the past 24 months.
The seller Gary Zimberg had not purchased any other properties and had not sold any properties over the same time period. The 5,000-square-foot property generated revenue of $140,300 or $28 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Williamsburg has 5,000 square feet of built space and 4,999 square feet of additional air rights for a total buildable of 9,998 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 50 feet deep with a total lot size of 4,999 square feet. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $838,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Williamsburg, The bulk, or 39 percent of the 50.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 25 percent of the space. In sales, Williamsburg has the 6th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Williamsburg is the 7th most active neighborhood among other neighborhoods. It had 4.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 79,538 square feet of the 84,538 square feet. The two identified owners are Nash Metalware and EPR Properties.
There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 84,538 square feet of built space are industrial buildings, with mixed-use buildings next occupying 41 percent of the space.

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